CBC
Case study · Industrial · Tenant-side

Logistics warehouse, M62 corridor

Pre-lease Schedule of Condition for an incoming tenant taking a 120,000 sq ft logistics unit on a 10-year FRI lease.

Property type
Logistics warehouse
Location
M62 corridor, West Yorkshire
Instruction
Pre-lease Schedule of Condition
Client
Incoming tenant (3PL operator)
Lease term
10-year FRI
Deliverable
Lease-ready written and photographic schedule

Overview

A national third-party logistics operator was taking a 120,000 sq ft warehouse on a 10-year FRI lease. The unit had previous occupiers and visible wear to the floor slab, dock levellers and external yards. We were instructed to fix the documented condition before lease completion.

The brief

The brief

The tenant's solicitor required a Schedule of Condition referenced in the lease to qualify the repairing covenant. The client had been burned at lease end on a previous warehouse, taking on liability for floor slab cracking that pre-dated their occupation, and wanted that risk removed at the outset of this letting.

Speed mattered: lease completion was scheduled for fifteen working days from instruction, with no flexibility from the landlord side.

Our role

What CBC did

An experienced specialist surveyor attended within five working days of instruction. The inspection covered the warehouse envelope, the internal slab, all dock-levellers and loading positions, the external yards and HGV circulation areas, the office annex, and roof-level high-bay lighting. We then produced an element-by-element written schedule with a fully cross-referenced dated photographic record.

  • 01External envelope, cladding and roof inspection (drone-supplemented at high level)
  • 02Internal slab, full coverage with close-up record of existing cracks and joints
  • 03Dock levellers, doors and loading bays, individually documented
  • 04External yards, HGV circulation, fencing and gatehouse
  • 05Office annex including services and welfare
The value

Why it mattered

On a 10-year FRI lease of an industrial unit, the tenant's exposure at lease end can run to six figures, particularly where pre-existing slab and yard wear is later attributed to the tenant's operation. The schedule fixed the documented condition at grant and removed those items from any future dilapidations claim.

Specialist insight

What we'd flag to any incoming logistics tenant

Floor slabs and external yards are the two most contested elements at lease end on industrial units. Both deteriorate through normal use, and both can be expensive to make good. A serious photographic record at lease grant, close-up plus contextual, is the single most valuable evidential asset a logistics tenant can have.

, CBC Surveyors

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Schedule of Condition for industrial and logistics tenants

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